YPF(US:YPF)2025-05-07 21:58Financial Performance - Revenues for Q1 2025 totaled $4,608 million, a decrease of 3% quarter-over-quarter (q/q) but an increase of 7% year-over-year (y/y) compared to Q1 2024[15]. - Net result for Q1 2025 was a loss of $10 million, a 96% improvement from a loss of $284 million in Q4 2024, but a decline from a profit of $657 million in Q1 2024[7]. - Revenues totaled US$3.9 billion, down 3% q/q, primarily due to lower seasonal diesel demand and a decline in oil exports[35]. - Gross profit for Q1 2025 was $1,279 million, reflecting a significant increase of 28.5% Q/Q, although it showed a slight decrease of 0.9% Y/Y[5.2]. - Operating income for Q1 2025 was $192 million, a substantial recovery from a loss of $530 million in Q4 2024, but a decrease of 71.2% Y/Y from $666 million in Q1 2024[5.2]. - The company reported a net loss of US$10 million in 1Q25, a significant improvement from a loss of US$284 million in 4Q24[21]. - The company recorded a financial net loss of US$256 million in 1Q25, compared to a loss of US$112 million in 4Q24, mainly due to lower domestic interest income rates[20]. - Earnings per share attributable to shareholders of the parent company was $(0.04) in Q1 2025, down 94.6% from $1.66 in Q1 2024[5.2]. Operational Highlights - Adjusted EBITDA reached $1,245 million, reflecting a significant increase of 48% q/q, primarily driven by higher fuel prices and operational savings from divested mature fields[8]. - Adjusted EBITDA reached US$766 million in 1Q25, reflecting a 28% increase quarter-over-quarter, driven by seasonal demand for natural gas and higher crude oil prices[29]. - Total revenues for the upstream segment amounted to US$2,067 million in 1Q25, a 5% increase from the previous quarter, primarily due to a 21% rise in natural gas sales[25]. - The company’s adjusted EBITDA for the midstream and downstream segment was US$504 million in 1Q25, a 36% increase quarter-over-quarter[23]. - The company’s adjusted EBITDA, excluding inventories price effect, reached US$504 million, up 36% q/q, supported by higher local fuel prices[39]. - The company produced approximately 40% of Argentina's oil and 30% of its gas, maintaining its position as the largest shale producer in Vaca Muerta[6]. - Shale oil production averaged 147.3 kbbl/d, representing a 7% increase q/q and a 31% increase y/y, constituting 55% of total oil production[11]. - Crude oil production averaged 270 kbbl/d, flat q/q, with shale oil growth at 147 kbbl/d (+7% q/q), offsetting a 6% decline in conventional output[32]. - Natural gas production increased by 9% q/q, driven by higher seasonal demand from power plants, while NGL production rose by 34% q/q[33]. Capital Expenditures and Investments - Capital expenditures (CAPEX) amounted to $1,214 million, down 8% q/q but up 4% y/y, with 75% focused on unconventional activities, particularly shale[10]. - CAPEX for the upstream segment was US$979 million in 1Q25, an 11% increase from 4Q24, with a focus on drilling and workover activities[29]. - CAPEX was US$204 million, a decrease of 42% q/q, with 53% allocated to refining projects[41]. - The company signed a Memorandum of Understanding (MoU) for the transfer of 10 conventional blocks in Santa Cruz Province as part of its Mature Fields Exit Program[12]. - Argentina LNG project received Final Investment Decision (FID) approval for a 20-year charter agreement for 2.45 MTPA FLNG, with expected completion by 2027[12]. Debt and Financial Position - The company reported a net debt of $8,336 million, an increase of 12% q/q and 16% y/y, with a net leverage ratio of 1.8x[7]. - Total debt increased to US$9,566 million, reflecting a 7.0% rise from the previous quarter[58]. - The company issued a 9-year unsecured international bond for US$1.1 billion at a yield of 8.50% during 1Q25[60]. - The net leverage ratio increased from 1.6x in 4Q24 to 1.8x in 1Q25, with expectations to return to 1.5x to 1.6x after closing the mature fields transaction[59]. - Cash and short-term investments decreased to US$1,230 million, an 18.4% decline compared to the previous quarter[58]. - Free cash flow was negative US$957 million, impacted by US$230 million from mature fields and US$211 million from M&A activities[54]. Market Position and Shareholder Information - The company’s total issued capital stock was 393,312,793 shares as of March 2025, with 51% owned by the Argentina Government[19]. - YPF operates three refineries, accounting for about 50% of Argentina's refining capacity, and holds a market share of over 55% in local diesel and gasoline sales[6]. - The company’s subsidiary, Metrogas, distributes around 25% of the country's natural gas, while YPF Luz is the third largest power generation company in Argentina[6]. - The government holds a controlling 51% stake in YPF, which is listed on the NYSE and ByMA[6]. - The company is in the process of divesting conventional mature fields to focus on its core operations[6].